The following data (in thousands of dollars) have been taken from the accounting records of the Maroon Corporation for the just completed year. Sales-1,150
Raw materials inventory, beginning--- 15
Raw materials inventory, ending--- 40
Purchases of raw materials--- 150
Direct labor--- 250
Manufacturing overhead--- 300
Administrative expenses--- 500
Selling expenses--- 300
Work in process inventory, beginning--- 100
Work in process inventory, ending--- 150
Finished goods inventory, beginning--- 80
Finished goods inventory, ending--- 120
Use the above data to prepare (in thousands of dollars) a schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold for the year. In addition, what is the impact on the financial statements if the ending finished goods inventory is overstated or understated?© BrainMass Inc. brainmass.com October 2, 2020, 1:54 am ad1c9bdddf
Your tutorial (ATTACHED) gives you a report showing how to find the missing amount ...
Your tutorial (attached in Excel) gives you a report showing how to find the missing amount to compute cost of goods manufactured and cost of goods sold. Click in the cells to see the computations for missing amounts. A proforma income statement is given with inventory overstated and understated so you can "see" how the profit is changed. The excel spreadsheet is then a template for other problems that permit you to compute these amounts.